> Warren Buffett Blog: Warren Buffet: India investing part 2

Wednesday, April 17, 2013

Warren Buffet: India investing part 2

Berkshire India also expects social media platforms like Facebook and Twitter to play an increasingly crucial role.

“As we progress towards becoming the one-stop shop for insurance, our aim is not just to sell insurance but to help the customer understand the nuances of insurance. It is here that social media plays a major role... We realise that the major attraction of the online mode for a customer is a relatively cheaper pricing,” Balakrishnan said.

Ajit Jain, Berkshire Hathaway’s global head of reinsurance business and often seen as a possible successor to Warren Buffett, also plays an active role in its Indian operations.

“Ajit Jain is a part of the Board of Berkshire India Limited and a regular participant in our discussions and formulations. Being actively involved and well versed with our operations, Jain is both aware and happy of our progress as a Company,” Balakrishnan said.

Asked about life insurance business plans, he said life insurance is a different ball game all together but with adequate research, it expects to introduce life products well-suited for the online medium.

“Products that are both a good value proposition for the customer and viable to sell online,” he said.

“As use of mobile Internet increases, our penetration to the rural and semi-urban areas will grow rapidly given that a large part of our web traffic today stems from mobile devices.

Our rural penetration is expected to closely toe that of the telecom sector,” Balakrishnan said.